SteelMint’s domestic steel scrap (end-cutting) index fell by INR 300/tonne (t) to INR 43,800/t DAP Mandi Gobindgarh on 23 February, 2023. Low demand for semi-finished and finished steel put pressure on scrap prices.
Prices of steel ingots in Mandi Gobindgarh opened on a positive note in morning trade today at INR 49,300/t, but edged down later in the day to INR 49,000/t at the time of reporting and price normalisation. Prices in almost all the key markets decreased by up to INR 500/t today.
Trading in semi-finished and finished steel remained limited with only need-based purchases taking place. Also, liquidity issues persisted in the market, putting a brake on buying.
“There is low demand for finished steel, and buyers are remaining mute. This is putting pressure on the market and leading to price correction,” a source informed.
Snapshots of other markets
Alang: Shipbreaking melting scrap prices in Alang, Gujarat, declined by INR 200/t d-o-d, as per SteelMint assessment. HMS (80:20) prices are assessed at INR 39,500/t exy. Lack of demand and buying enquiries resulted from prices correcting sharply for semis and limited trading in finished steel. Thus, scrap suppliers reduced their offers slightly in the spot market.
Jalna: Prices of semis declined by INR 200/t to INR 48,500/t, while rebar prices fell by INR 200/t to INR 55,800/t. On the other hand, HMS 80:20 prices remained stable at INR 37,900/t.
Price highlights
End-cutting and billets spread: In Mandi, the end-cutting scrap and billets spread was at around INR 5,000-5,500/t.
Domestic and imported scrap price gap: Imported melting scrap prices at Nhava Sheva Port were at $434-$446 t (including freight, which equates to approximately INR 39000/t), while local scrap – HMS (80:20) – prices in Mumbai were assessed at INR 37,000/t.
Raipur sponge iron-billet spread: The current conversion spread (margin) from pellet-based DRI (P-DRI) to steel billets in Raipur stands at around INR 14,250/t.
To see SteelMint’s melting scrap assessment, pricing methodology and specification documents, Click here
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